Thus easy to manage and low Capex expenditures.     10.  

Expenses incurred before the property is in service are considered capital expenditures and must be added to the property’s basis rather than deducted immediately.This means costs like rehab expenses, repairs, and other improvements made before the property is ready to rent are added to the property’s purchase price and can be depreciated over time once the property is in service.

Second biggest mistake is failing to realize these construction loans allow draws on improvements meaning cash expenditures are required before the first draw can be issued.

You'll be tagging transactions throughout the year with categories that fit the Schedule E so when tax time comes (if you stay on top of it) every deposit and expenditure will already be categorized and it's quick to create the Schedule E and/or run P&L reports any time you need to.

But my question is that if we consider other operating costs like maintenance, capital expenditure, vacancy, etc then this property won't cash flow, so is this a good deal?

When you look at a property make a list of all major capital expenditures roof hvac etc.

everything has a lifespan and if you do not evenly allocate for those expenditures, you have not allocated for all expenses.  

You have the mortgage, taxes, insurance, maintenance, capital expenditures (roof, flooring, etc.), and also need to consider the cost of vacancies or bad tenants.I also recommend you charge market rate, for yourself and the tenant.

The study could also identify the opportunity to capture additional benefits such as dispositions, and repair and maintenance expenditures.

Also asking them how they calculate DSCR and whether its on Pro Forma or trailing 12 financials or tax returns.A lot of times you'll see properties that don't make DSCR on tax returns because the owner might have booked capital expenditures or major maintenance to repairs and maintenance.